Rental Protections: What Renter's Insurance Is All About

« Back to Home

Common Auto Insurance Coverage Myths Debunked

Posted on

When you are shopping for auto insurance coverage, it's essential to distinguish facts from misconceptions. Auto insurance myths usually result from common knowledge assumptions, and the myths can cause a lot of confusion.  

Here are the common auto insurance myths debunked.

Myth: Red Vehicles Are More Expensive to Insure

There is a notion that red and bright-colored vehicles are more expensive to insure. However, this is a misconception, as color does not affect auto insurance premiums. Consulting your auto insurance broker will help you understand factors that affect auto insurance coverage costs. During the consultation, you will come to learn that factors affecting auto insurance costs include:

  • Mileage
  • Driving history
  • Credit score
  • Years of driving experience
  • Location
  • Type of vehicle
  • Coverage type  

Myth: Car Insurance Safeguards Personal Belonging Inside Your Car In Case of Theft

Car insurance coverages are meant to safeguard the driver, passengers, and vehicle in case of a collision. However, there is a misconception that car insurance can compensate for goods stolen from your car. This is false; belongings are not protected by car insurance but rather by the tenant's or homeowner's insurance plan. Therefore, to safeguard your belongings from theft while on the move, consult your home insurance broker.

Myth: Vehicles With Advanced Safety Features Are Cheap to Insure

Most modern vehicles now have advanced safety features like automatic emergency braking systems and inattentive driving monitoring. All these features are meant to minimize the chances of car accidents. It's unfortunate most people assume cars with such features cost less to insure. This is never the case since car insurance agencies consider the advanced safety features as a liability once damaged, as they are expensive to repair and replace.

Myth: Old Drivers Pay More for Auto Insurance Coverage

People assume old drivers pose a higher risk of causing accidents, thus they should pay more motor insurance premiums. However, this is false considering auto insurance agencies provide premium reductions to older drivers in various situations. For instance, old drivers can enjoy discounts on insurance premiums upon completing accident mitigation training courses.

Myth: Comprehensive Motor Insurance Safeguards All Types of Risks

Comprehensive motor insurance doesn't cover all forms of risks. To safeguard your ride against all forms of risks, you must obtain comprehensive, collision, and standard motor insurance policies.

Above are common auto insurance coverage misconceptions you should avoid. If you are not certain about what influences the cost of your motor insurance premiums, consult an insurance agent. The color of your car and your age do not affect the cost of your insurance premiums. Similarly, motor insurance policies do not safeguard personal items against theft.

For more information, contact a local insurance provider, like Full Service Insurance Agency of Wisconsin LLC.